HFF Arranges Sales of Two Prominent Houston Office Buildings

By Georgiana Mihaila, Associate Editor
Holliday Fenoglio Fowler L.P.’s Houston office can pride itself on a highly active presence in the local commercial market, having found buyers for two prominent office properties it was hired to market.
Most recently, HFF announced the [...]

Holliday Fenoglio Fowler L.P.’s Houston office can pride itself on a highly active presence in the local commercial market, having found buyers for two prominent office properties it was hired to market.

Most recently, HFF announced the successful sale of The Plaza at Enclave, a 344,295-
square-foot, Class A office building in Houston’s Energy Corridor submarket. HFF had marketed the property on behalf of seller Core Real Estate and BayNorth Capital L.L.C., while also arranging acquisition financing for buyer Azrieli Group—a real estate investment and development company based in Tel Aviv—through Cornerstone Real Estate Advisers, MassMutual’s real estate investment subsidiary.

Financial details have not been disclosed, yet according to a purchase agreement signed by the Azraeli Group on Dec. 29, 2011, the company had agreed to pay $107.5 million for the property, in addition to transaction and financing costs estimated at $750,000.

The six-story office building is located on 7.97 acres at 1254 Enclave Parkway and is serviced by an attached six-story parking garage with 1,434 spaces. Completed in 2008, The Plaza at Enclave is LEED Gold certified. Entirely leased up, the building is home to Dow Chemical Corp.’s regional headquarters, which occupies 87 percent of the building, with a long-term lease expiring in May 2026; the other three tenants are Ridgewood Energy, Petrofac and HRT America.

Senior managing director Dan Miller, part of the HFF investment sales team that represented Core Real Estate in the transaction, was also involved in the sale of 2200 West Loop South to Parmenter Realty, along with director Marty Hogan. HFF marketed the 201,720-square-foot, Class A office building on behalf of seller KBS Real Estate Investment Trust.

Miami-based Parmenter also acquired Houston’s Brookhollow Plaza I, II and II no more than three weeks ago for an undisclosed amount and clear of debt. The property, adjacent to the Intercontinental Hotel on the west side of Loop 610, between San Felipe and Westheimer in Houston’s West Loop/Galleria market, underwent extensive renovations in 2000 and is currently 87 percent leased to tenants including Morgan Stanley and Tenaris.